What is lead management in CRM?
Lead management is a systematic process in which incoming leads are qualified, analyzed, and nurtured so that they can be converted into new business opportunities. In a typical sales process, leads from multiple channels enter your lead management system, and the sales-ready leads are converted into deals. What is the Difference between Lead Management and CRM? Scope. Lead management forms one piece of CRM software. Learning Goals: -Define customer relationship management (CRM), and explain its importance to a small business. -Discuss the significance of providing extraordinary customer service. -Understand how technology can be used to improve customer relationships and the techniques used to create a customer database. Learning Goals (cont.):
-Explain how consumers are decision-makers and why this is important in understanding customer relationships. -Identify certain psychological influences on consumer behavior. -Recognize certain sociological influences on consumer behavior.
What is Customer Relationship Management?
-Customer Relationship Management (CRM) -A company-wide business strategy designed to optimize profitability and customer satisfaction by focusing on highly defined and precise customer groups. What is Customer Relationship Management? (Cont.) -Focus of CRM:
-Customers rather than products -Changes in processes, systems, and culture -All channels and media involved in the marketing effort, from the Internet to field sales. Benefits of CRM to the Small Firm: Economic benefits of maintaining relationships with current customers:
-Acquisition costs for new customers are high. -Long-time customers spend more money than new ones. -Happy customers refer their friends and colleagues.
Benefits of CRM to the Small Firm (Cont.) : Economic benefits of maintaining relationships with current customers (cont.): -Order-processing costs are lower for established customers. -Current customers are willing to pay more for products. Essential Materials of Successful CRM Program:
Benefits of CRM to the Small Firm: Economic benefits of maintaining relationships with current customers: -Acquisition costs for new customers are high. -Long-time customers spend more money than new ones. -Happy customers refer their friends and colleagues. Benefits of CRM to the Small Firm (Cont.) : Economic benefits of maintaining relationships with current customers (cont.): -Order-processing costs are lower for established customers. -Current customers are willing to pay more for products. Essential Materials of Successful CRM Program:
Personal i Lifestyle and psychographic data Demographics Profile of past responses
Transaction data Using a CRM Database :
Creating an Effective CRM Program: 1-Capture relevant customer data on interactions across important touchpoints. 2-Analyze those data to better understand customers. 3-Use those insights to improve relationships with customers. Using a CRM Database (cont’d): Customer Segmentation Strategy: -A process of identifying customers that fit into smaller, more homogeneous groups. 80/20 Principle: -A principle that maintains that 80 percent of a firm’s sales will come from 20 percent of its customers. Recency-Frequency Monetary Analysis: -An analysis that reveals customers are most likely to buy from a firm in the future because they have made purchases recently, frequently, and in amounts exceeding an established minimum. Customer Lifetime Value (CLV): -The total profit expected from all future sales to a long-term customer.
Stage One: Need Recognition Need Recognition: -Occurs when a consumer realizes that her or his current state of affairs differs significantly from some ideal state. -A consumer must recognize a need before purchase behavior can begin. -Many factors can influence the recognition of a need. -Marketing strategy can be used to influence need recognition. Stage Two: Information Search and Evaluation Evaluative Criteria: -The features or characteristics of a product or service that customers use to compare brands Evoked Set: -A group of brands that a consumer is both aware of and willing to consider as a solution to a purchase need. -Gaining inclusion into an evoked set requires creating market awareness of a product or service. Stage Three: Purchase Decision Factors Affecting the Purchase Decision: -Brands in the evoked set: ----Brand advertising -Purchase setting: store or non-store outlet: ----Store, catalogs, TV shopping channels, the Internet -Intention to purchase: planned or spontaneous ----The store layout, sales personnel, and point-of-purchase displays. ----Ease of use of Web site Stage Four: Post-Purchase Evaluation Post-Purchase Dissonance -Is the anxiety that occurs when a customer has second thoughts immediately following a purchase. -Can lead to customer complaints, brand switching, or discontinuing the use of the product. Post-Purchase Dissonance (cont.) -Can be reduced by: ----Reassurance by salespersons. ----Guarantees and trial periods. ----Customer follow-ups. ----Confirming information from other users.
Simplified Model of Consumer Behavior (Customers